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HomeMy WebLinkAboutOrdinances Book 13, Page 898, No Resolution NumberA RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK OF THE CITY OF PADUCAH, KENTUCKY TO EXECUTE, FOR AND ON BEHALF OF SAID CITY, A COOPERATION AGREEMENT BETWEEN THE CITY OF PADUCAH MUNICIPAL HOUSING COMMISSION AND THE CITY OF PADUCAH, KENTUCKY BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the Mayor and City Clerk of the City of Paducah, Kentucky, be, and they are hereby, authorized and directed to execute on behalf of said city, a cooperation agreement between the City of Paducah Municipal Housing Commission and the City of Paducah, Kentucky, which is in words and figures as follows, to -wit: "COOPERATION AGREEMENT "This Agreement entered into this _ day of , 1958, If 6 G by and between the City of Paducah Municipal Housing Commission (herein called the tLocal Authority}) and the City of Paducah, Kentucky (herein called the tMunicipality'), witnesseth: "In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. Whenever used in this Agreement: (a) The term 'Project' shall mean any low -rent housing here- after developed as an entity by the Local Authority with financial assistance of the Public Housing Administration (herein called the 'PHA'), excluding, however, any low -rent housing project covered by any contract for loans and annual contributions entered into between the Local Authority and the PHA, or its predecessor agencies, prior to the date of this Agreement. (b) The term 'Taxing Body' shall mean the State or any political subdivision or taxing unit thereof in which a Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefit with respect to a Project if it were not exempt from taxation. (c) The term 'Shelter Rentt shall mean the total of all charges to all tenants of a Project for dwelling rents and nondwelling rents (excluding all other income of such Projects), less the cost to the Local Authority of all dwelling and nondwelling utilities. (d) The term 'Slum' shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowded, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, or detrimental to safety, health, or morals. 2. The Local Authority'shall endeavor (a) to secure a contract or contracts with the PHA for loans and annual contributions covering one or more Projects comprising approximately forty (40) units of low -rent housing and (b) to develop and administer such Project or Projects, each of which shall be located within the corporate limits of the Municipality. The obligations of the parties hereto shall apply to each such Project. 899 3. (a) Under the constitution and statutes of the Commonwealth of Kentucky, 31 all Projects are exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. With respect to any Project, so long as either (i) such Project is owned by a public body or governmental agency and is used for low -rent housing pur- poses, or (ii) any contract between the Local Authority and the PHA for loans and annual contributions, or both, in connection with such Project remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the PHA in connection with such Project remain unpaid, whichever period is the longest, the Municipality agrees that it will not levy or impose any real or personal property taxes or special assessment upon such Project or upon the Local Authority with respect thereto. During such period, the Local Authority shall make annual payment (herein called 'Payment in Lieu of Taxes?) in lieu of such taxes and special assessments and in payment for the Public services and facilities furnished from time to time without other cost or charge for or with respect to such Project. (b) Each such annual Payment in Lieu of Taxes shall be made after the end of the fiscal year established for such Project, and shall be in an amount equal to either (i) ten percent (10%) of the Shelter Rent actually collected but in no event to exceed ten percent (10`%0 of the Shelter Rent charged by the Local Authority in respect to such Project during such fiscal year, (ii) the amount permitted to be paid by applicable state law in effect on the date such payment is made, whichever amount is the lower. (c) The Municipality shall distribute the Payments in Lieu of Taxes among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year if the Project were not exempt from taxation bears to the total real property taxes which would have been paid to all of the Taxing Bodies for such year if the Project were not exempt from taxation, Provided, however, that no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the Project were not exempt from taxation. (d) Upon failure of the Local Authority to make any Payment in Lieu of Taxes, no lien against any Project or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. M91 4. The Municipality agrees that, subsequent to the date of initia- tion (as defined in the United States Housing Act of 1937, as amended) of each Project and within five years after the completion thereof, or such further period as may be approved by the PHA, there has been or will be elimination (as approved by the PHA) by demolition, condemnation, effective closing, or compulsory repair or improvement, of unsafe or insanitary dwelling units situated in the locality or metropolitan area in which such Project is located, substantially equal in number to the number of newly constructed dwelling units provided by such Project; Provided. That, where more than one family is living in an unsafe and insanitary dwelling unit, the elimination of such unit shall count as the elimination of units equal to the number of families accommodated therein; and provided, further, That this paragraph 4 shall not apply in the case of (i) any Project developed on the site of a Slum cleared subsequent to July 15, 1949, and that the dwelling units eliminated by the clearance of the site of such Project shall not be counted as elimination for any other Project or any other low -rent housing Project, or (ii) any Project located in a rural nonfarm area. 5. During the period commencing with the date of the acquisition of any part of the site or sites of any Project and continuing so long as either (i) such Project is owned by a public body or governmental agency and is used for low -rent housing purposes, or (ii) any contract between the Local Authority and the PHA for loans or annual contributions, or both, in connection with such Project remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the PHA in connection with such Project remain unpaid, whichever period is the longest, the Plunicipality without cost or charge to the Local Authority or the tenants of such project (other than the Payments in Lieu of Taxes) shall: (a) Furnish or cause to be furnished to the Local Authority and the tenbnts of such Project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Idunicipality; (b) Vacate such streets, roads, and alleys within the area of such Project as may be necessary in the development thereof, and convey without charge to the Local Authority such interest as the Municipality may have in such vacated areas; and, in so far as it is lawfully able to do so without cost or expense to the Local Authority or to the Municipality, cause to be removed from such vacated areas, in so far as it may be necessary, all Public or private utility lines and equipment; (c) In so far as the Municipality may lawfully do so, (i) grant such deviations from the building code of the Municipality as are reasonable and necessary to promote economy and efficiency in the development and administration of such Project, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of such Project as are reasonable and necessary for the development and protection of such Project and the surrounding territory; 901 (d) Accept grants of easements necessary for the development of such Projects; and, (e) Cooperate with the Local'Authority by such other lawful action or ways as the Municipality and the Local Authority may find necessary in connection with the development and adminis- tration of such Project. 6. In respect to any Project the Municipality further agrees that within a reasonable time after receipt of a written request therefor from the Local Authority: (a) It will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of such Project, together with all storm and sanitary sewer mains in such dedicated areas, after the Local Authority, at its own expense, has completed the grading, improvement, paving, and installation thereof in accordance with specifications acceptable to the Municipality; (b) Ip will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding such Project or nedessary to provide ade- quate access thereto (in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned); and (c) It will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to such Project and serving the bounding streets thereof (in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned). 7. If by reason of the Municipality's failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or to cause to be furnished to the Local Authority or to the tenants of any Project, the Local Authority incurs any expense to obtain such services or facilities then the Local Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to become due to the Municipality in respect to any Project or any other low -rent housing projects owned or operated by the Local Authority. 8. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to any Project covered by this Agreement. 9. So long as any contract between the Local Authority and the PHA for loans (including preliminary loans) or annual contributions, or both, in connection with any project remains in force and effect, or so long as any bonds issued in connection with any Project or any monies due to the PHA in connection with any Project remain unpaid, this Agreement shall not be abrogated, changed, or modified without the consent of the PHA. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to each project so long as the beneficial title to such Project is held by the Local Authority or by any other public body or governmental agency, including the PHA, authorized by law to engage in the development or administration of 902 low -rent housing project. If at any time the beneficial title to, or possession of, any Project is held by such other public body or governmental agency, including the PHA, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the PHA. 10,4 In addition to the Payments in Lieu of Taxes and in further consideration for the public services and facilities furnished and to be furnished in respect to any Project for which no Annual Contributions Contract has been entered into prior to August 2, 1954, between the Local Authority and the PHA; (1) After payment in full of all obligations of the Local Authority in connection with such Project for which any annual con- tributions are pledged and until the total amount of annual contributions paid by the PHA in respect to such Project- has been repaid, (a) all receipts in connection with such Project in excess of expenditures necessary for the management, operation, maintenance, or financing, and for reasonable reserves therefor, shall be paid annually to the PHA and to the Municipality on behalf of the local public bodies which have contributed to such Project in the form of tax exemption or other- wise, in proportion to the aggregate contribution which the PHA and such local public bodies have made to such Project, and (b) no debt in respect to such Project, except for necessary expenditures for such Project, shall be incurred by the Local Authority; (2) If, at any time, such Project or any part thereof is sold, such sale shall be to the highest responsible bidder after advertising, or at fair market value as approved by the PHA, and the proceeds of such sale, together with any reserves, after application to any outstanding debt to the Local Authority in respect to such Project, shall be paid to the PHA and local public bodies as provided in clauses 1(a) of this Section 10; Provided, That the amounts to be paid to the PHA and the local public bodies shall not exceed their respective total contribution to such Project; (3) The Municipality shall distribute the payments made to it pursuant to clauses (1) and (2) of this Section 10 among the local public bodies (including the Municipality) in proportion to their respective aggregate contributions to such Project. IN WITNESS VTHEREOP the Municipality and the Local Authority have respectfully signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. 903 (Seal) ATTEST: City of Paducmh ofKentuckc porporate ality By (Title) (Seal) City of Paducah Municipal Housing Commission ATTEST:(Corporate Name of oca ut ority (Title) By Chairman" SECTION 2. This Resolution shall be in full force and effect from and after its adoption. v Mayor- Passed by the Board of Commissioners April 26, 1958 Recorded by Sarah Thurman, City Clerk, April 26, 1958.